The movie theater trade organization Cinema United has released its annual report on exhibition’s efforts to update thousands of cinemas, reporting that the North American theater industry’s spending on refurbishments has reached $2.7 billion over the past two years.
The top 8 theater chains have spent $1.8 billion of that capital expenditure in North America, and $1.2 billion has come over the past 12 months with $840 million of that from the top 8 chains. These refurbishments have ranged from new sound systems — which on average cost $58,000 per auditorium — to new entertainment centers that combine cinemas with other amenities, which cost roughly $45 million to build.
As theaters have tried to bring moviegoers back in the wake of COVID lockdowns, answering common complaints about poor sound and picture quality and lackluster overall experience has been a major goal for multiple theater chains. Regal Cinemas, for example, has updated its auditoriums nationwide with new luxury recliner seats as part of this multiyear CapEx effort, while southern regional chain Santikos Entertainment is in the midst of a major update to the concessions areas at several of its locations.
The refurbishment campaign has been boosted by a strong box office resurgence over the past five months, which has seen the domestic box office hit $7 billion year-to-date and projects a final domestic annual total of $10.5 billion. The refurbishments have also overlapped with Disney’s Infinity Vision campaign for “Avengers: Doomsday,” as several theater owners have told TheWrap that they have prioritized auditorium sound and picture updates so that their locations can be promoted by the studio.
